Ll.1. Johnathon Manufacturing Limited (JM) has made the decision to use the revaluation model forits land.● JM purchased land on June 15th in 2014 for $8 million.At December 31, 2014, the land was valued at $11 million.At December 31, 2015, the land was valued at $10 million.At December 31, 2016, the land was valued at $6 million, which was considered animpairment.●●Required: Provide journal entries to record the purchase of land and the revaluation of land atthe end of each year.June 15th, 2014Dec 31, 2014Dec 31, 2015Dec 31, 2016

The revaluation model of land provides us with a business model that carries an option to revalue…

Johnathon Manufacturing Limited (JM) has made the decision to use the revaluation model for its land. ● ● JM purchased land on June 15th in 2014 for $8 million. At December 31, 2014, the land was valued at $11 million. At December 31, 2015, the land was valued at $10 million.

Johnathon Manufacturing Limited (JM) has made the decision to use the revaluation model for its land. ● ● JM purchased land on June 15th in 2014 for $8 million. At December 31, 2014, the land was valued at $11 million. At December 31, 2015, the land was valued at $10 million.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter2: Basic Accounting Systems: Cash Basis

Section: Chapter Questions

Problem 6CDQ: Capstone Consulting Services acquired land 5 years ago for $200,000. Capstone recently signed an...

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Question

Ll.1.

Johnathon Manufacturing Limited (JM) has made the decision to use the revaluation model for
its land.
● JM purchased land on June 15th in 2014 for $8 million.
At December 31, 2014, the land was valued at $11 million.
At December 31, 2015, the land was valued at $10 million.
At December 31, 2016, the land was valued at $6 million, which was considered an
impairment.
●
●
Required: Provide journal entries to record the purchase of land and the revaluation of land at
the end of each year.
June 15th, 2014
Dec 31, 2014
Dec 31, 2015
Dec 31, 2016

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